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Have you seen this press release put out in 2006?
MCCAIN STATEMENT ON CO-SPONSORSHIP OF THE FEDERAL HOUSING ENTERPRISE REGULATORY REFORM ACT OF 2005
May 26, 2006
Washington D.C. – Today, U.S. Senator John McCain (R-AZ) submitted for the record the following statement regarding his co-sponsorship of the Federal Housing Enterprise Regulatory Act of 2005:
Mr. President, this week Fannie Mae’s regulator reported that the company’s quarterly reports of profit growth over the past few years were “illusions deliberately and systematically created” by the company’s senior management, which resulted in a $10.6 billion accounting scandal.
The Office of Federal Housing Enterprise Oversight’s report goes on to say that Fannie Mae employees deliberately and intentionally manipulated financial reports to hit earnings targets in order to trigger bonuses for senior executives. In the case of Franklin Raines, Fannie Mae’s former chief executive officer, OFHEO’s report shows that over half of Mr. Raines’ compensation for the six years through 2003 was directly tied to meeting earnings targets. The report of financial misconduct at Fannie Mae echoes the deeply troubling $5 billion profit restatement at Freddie Mac.
Mr. President, the OFHEO report also states that Fannie Mae used its political power to lobby Congress in an effort to interfere with the regulator’s examination of the company’s accounting problems. This report comes some weeks after Freddie Mac paid a record $3.8 million fine in a settlement with the Federal Election Commission and restated lobbying disclosure reports from 2004 to 2005. These are entities that have demonstrated over and over again that they are deeply in need of reform.
For years I have been concerned about the regulatory structure that governs Fannie Mae and Freddie Mac – known as government sponsored entities or GSEs – and the sheer magnitude of these companies and the role they play in the housing market. OFHEO’s report this week does nothing to ease these concerns. In fact, the report does quite the contrary. OFHEO’s report solidifies my view that the GSEs need to be reformed without delay.
I join as a cosponsor of the Federal Housing Enterprise Regulatory Reform Act of 2005, S. 190, to underscore my support for quick passage of GSE regulatory reform legislation. If Congress does not act, American taxpayers will continue to be exposed to the enormous risk that Fannie Mae and Freddie Mac pose to the housing market, the overall financial system, and the economy as a whole.
I urge my colleagues to support swift action on this GSE reform legislation.
Silly Lola, its in the Congressional Record.
- R MLv 51 decade agoFavorite Answer
And in the same year Obama said he wouldn't be running for Pres. then flip flop and then choose Fannie's CEO for an adviser. I think this does speak clearly to experience and the staff one chooses to surround themselves with.
Thanks for sharing real information, star for you.
- Anonymous1 decade ago
John McCain seen this coming; yet those in Congress and in the White House ignored him.
John McCain is the man we need in the White House folks. He is looking out for our interest. Obama is in this game for his own glory.
If you vote Obama you are giving a vote to usher in the New World Order.
- Anonymous1 decade ago
No, I didn't see that. I'm sure you'll still get bashed by the libs. All lies!
- 1 decade ago
if this is true then why didn't the then republican controlled congress do anything about it? the blame lays squrely on republicans